New government copyright legislation will allow people who have legally purchased music to make copies of it. Photograph: Suzi Pratt/FilmMagic

The UK music industry is seeking a judicial review of new legislation allowing music fans to make copies of legally-purchased music, arguing that musicians must be compensated as a result of lost sales.

The Musicians’ Union, the British Academy of Songwriters, Composers and Authors and industry body UK Music are taking legal action over the government’s new copyright legislation, which came into force on 1 October.

“We fully support the right of the consumer to copy legally bought music for their own personal and private use, but there must be fair compensation for the creators of the music,” said Vick Bain, chief executive of Basca.

The governmenthas scrapped a law that made it technically illegal for music fans to download a legally-purchased CD onto a laptop, smartphone or MP3 player.

In the legal action submitted to the high court in London, the music industry bodies argue that the UK legislation is out of step with European Union law which requires “fair” compensation for rights holders.

“We have sought a judicial review because of the way the government made its decision not to protect the UK’s creative industries,” said Bain. “[This is] in stark contrast to other countries that have introduced copyright exceptions.”

The government has previously rejected calls from record companies and musicians for a tax, licence or levy to copying devices – laptops, phones and MP3 players – to cover lost sales as a result of the change to copyright law.

“Licensing is the business model for the UK music industry’s success in the digital age,” said Jo Dipple, chief executive of UK Music. “However, where the right to licence is removed, rights holders should be compensated. Copyright enables people to earn a living out of their creativity and sustains jobs. The government has made a serious error with regards to private copying. The legislative framework must guarantee musicians and composers are fairly compensated.”

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